Former Goldman Sachs fund manager Raoul Pal has warned that the coronavirus’ effects on the global economy are about to get worse. In the meantime, he’s gone ahead and moved more than 25 percent of his portfolio into bitcoin and cryptocurrencies.
Raoul Pal Is a Big Fan of BTC
This is an interesting notion on Pal’s part considering many analysts don’t see bitcoin as the “safe haven” so many people would like it to be. The currency is considered by many to have failed the “safe haven” test it was giving during these troubling times. Many assets, if they were stable enough to retain wealth, would have managed to keep their price momentums steady despite selloffs and economic strife.
But bitcoin has done the opposite. In fact, it lost close to 70 percent of its value in a very short period, though at the time of writing, it has since settled above $6,800, meaning it’s only about $3,500 down from its February 2020 high of more than $10,300. The currency has had quite a test, and while it’s not unconscious, it’s certainly licking a few wounds.
Nevertheless, Pal sees something in bitcoin that many of these other critical analysts don’t. More than one quarter of his assets are now lodged in crypto as he moves his portfolio in different directions while working to relieve himself of the coronavirus effects.
In a statement, he described what he thinks is heading our way in the coming months:
I think the balance of probabilities are that this is a much longer event – in terms of economic impacts – than anybody is pricing in… I think it’s a huge societal change that’s coming from all of this.
This is certainly an understatement. In the United States, for example, unemployment is the highest it’s been in decades. More than three million people have filed claims, while all stores, restaurants and other non-vital businesses have closed indefinitely to ensure the virus doesn’t spread any further. People have been ordered to stay at home and are unable to leave except to obtain groceries or other provisions.
Pal is a longtime fan of bitcoin and feels that the trading opportunities and properties that come with the currency are likely to offset a lot of the problems and negative effects the coronavirus is causing. He has since ensured that his portfolio consists of four elements: bitcoin, gold, cash and additional trading chances. He believes crypto is an integral part of anyone’s portfolio.
This Went About Too Quickly
Commenting on how fast the virus spread, he stated in an interview:
The moment that spread hit Iran… and then Italy. That all happened over the span of three or four days. I was like, ‘time to panic before everybody else.’
Source: Live Bitcoin News